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<br /> <br />,."'-.(<#<.~ 1 <br />oJ.,)';'.!. <br /> <br />. <br /> <br />Developlllent of the oil shale industry is expected to proceed <br />in the following four distinct phases: <br /> <br />Phase I - experimental <br /> <br />Phase II - prototype <br /> <br />Phase III - primary expansion <br /> <br />Phase IV - secondary expansion <br /> <br />The experimental phase started about 15 years ago and is <br />now in its final stages. During this period methods have been <br />developed for each step in the production of shale fuels. <br /> <br />. <br /> <br />The prototype phase would involve the first. commercial <br />development of an oil Shale industry which would proba.bly be located <br />in the Grand Valley-De> Beque area. The objective of the prototype <br />phase would not be to produce large quantities of oil, but to firmly <br />establish the technology and economics of shale fuels before making <br />the large capital investments required for shBle oil to contribute <br />significantly to overall oil supply. Existing refineries, oil trans- <br />portation facilities, and local labor would probably be utilized <br />insofar as possible during this phase. <br /> <br />After operation of the prototype developlllent for a sufficient <br />period to demonstrate the soundness of intially adopted mining and <br />retorting methods or to make improvements in the methods, it is <br />anticipated that the oil shale industry would be expanded. Refining <br />facilities would be established in the local area, additional pipeline <br />facilities for transporting oil would be constructed, and means of <br />processing and utilizing the shale oil by-products would be developed. <br />The primary expansion would probably occur during the 1965-1970 <br />period and would be located along the Colorado River between Rifle and <br />De Beque and in the Parachute and Roan Creek areas. <br /> <br />The growth of the oil shale industry foll.owing the primary <br />expansion period would be rapid. In the Cameron and Jones report it <br />was estimated that by 1975 shale oil production would reach <br />1,250,000 barrels per day and that a local population increase of <br />340 ,000 would be supported by the oil shale developlllent and related <br />industries. About 80 percent of the shale oil production would be <br />from the area along the Colorado River between the Rifle and De Beque <br />and in the adjacent Parachute and Roan Creek areas. The remaining <br />20 percent of the production would be from the Piceance Creek area to <br />the north and from northeastern Utah. Ammonia and sulfur would <br />probably be the principal by-products. <br /> <br />. <br /> <br />30 <br />